IKF Finance aims to achieve ₹6,000 crore assets under management (AUM) over the next few years
Hyderabad, 18th October 2022: IKF Finance, India’s prominent Non-Banking Finance Companies (NBFCs) has today announced that its Assets under Management (AUM) has crossed INR 2000 crores. Mr. V G K Prasad, Founder &Chairman – IKF Group, Ms. K. Vasumathi Devi, Managing Director – IKF Finance Limited, Mr. Rama Raju, Chief Executive Officer – IKF Finance and Mr. Vinit Mehta, Director – MO Alternate Investment Advisors Private Limited (“MO Alts”) had briefed the media about the AUM achievement at a press event today.
Established in 1991, IKF Finance is today one of the prominent asset financing NBFCs in the country based out of Telugu states and a holistic finance provider for the commercial vehicle industry. The diverse borrowers’ profile includes small road transport operators, first-time buyers, people from weaker sections of society, and farmers. IKF Finance provides loans for the purchase of all category new and used vehicles through customized schemes that are built considering the business needs & cash flow cycles of the borrowers.
While unveiling the milestone of INR 2000 cr AUM, Mr. V G K Prasad, Founder and Chairman – IKF Group, who is a veteran in the vehicle finance business with four decades of industry experience, addressing the media said, ”The company has developed strong competencies in the loan origination and underwriting of underbanked and underserved segments. With the push from Reserve Bank of India (RBI) to NBFCs, the sector has accelerated and has been able to cater to the last mile funding. IKF Finance has a diverse liability franchise with limits from all PSU banks & financial institutions. Leveraging the co-lending partnership with Bank of India and ICICI Bank, IKF Finance will also target customers from tier II & tier III cities[I1] of India. IKF Finance is well positioned with a healthy growth in topline and bottomline.. The company’s subsidiary has also posted robust performance in its respective segments.”
Speaking at the event, Ms.K. Vasumathi Devi, Managing Director – IKF Finance Limited said, “‘LEGACY THAT INSPIRES, TECHNOLOGY THAT DELIVERS’ is our philosophy. IKF Finance could achieve this remarkable goal with its presence in the market for over 30 years. We have been providing our services to the underserved segment to meet their financial needs. The objective of IKF Finance is to become a one-stop platform for all vehicle financing needs for the underserved. We would like to scale up to more than ₹6000 crore assets under management (AUM) in the next few years leveraging on technology & distribution network. During FY22, IKF reported a profit after tax (PAT) of ₹40 crores as against a PAT of ₹32 crores during FY21. IKF Implementing technology to bring in Synergy between Finance and Technology with an objective to enhance efficiency in business Operations & Delivery with a better Connect with Channel, Vendors & Customers.IKF is also proud to have been associated with marquee investor – MO Alts for more than 7 years.”
Adding his comments to the announcement, Mr. Rama Raju, Chief Executive Officer – IKF Finance said, “IKF Finance has a vertically integrated business model and offers several products which include: Pre-owned Commercial vehicles, Construction equipment, Pre-Owned cars, New commercial vehicle financing and other loans like Tractors and Small & Medium Enterprise loans. IKF Finance has presence in 9 states comprising of 113 branch offices across India. Headquartered in Hyderabad, it manages assets of over Rs. 2000 crores and has a live customer base exceeding 60,000+ as of Sep-22. So far IKF Finance has served more than 2,00,000 customers. The company also plans to recruit an additional 1000+ local resources as part of its expansion plans in the next few years. Disbursements for the first half went up by 107% as opposed to the same period and touched Rs 711 Cr. Total AUM was Rs 2043 crore, showing an increase of 34%. The asset quality for IKF Finance improved with gross NPA coming down to 2.63% from 3.34% in first half.”
Mr.Vinit Mehta, Director – MO Alts said “We have collaborated with IKF Finance over the past 7 years as investors and have seen the company grow from less than INR 500 cr company at the time of our investment in 2015 to more than INR 3,500 cr by end of FY2022-23, which is a 7x growth since our investment. With a diversified secured asset strategy covering vehicle finance, SME and affordable housing, the company is well poised to sustainably grow 30-40% annually.”